Qatar increases IAG stake

DOHA: July 30, 2016. Qatar Airways has increased its stake in IAG Group from 15.67 percent to 20.01 percent. It acquired an initial 9.9 percent shareholding last year for a reported £1.15 billion.

IAG is the parent company of Aer Lingus, British Airways, Iberia and Vueling. The airline group's current stock price is around 400 UK pence a share, a fall of 24 percent since the UK Brexit referendum result on June 24.

"The recent market valuation of one of the world's leading airline groups has provided what we believe is an attractive opportunity to increase our shareholding in IAG. We continue to be highly supportive of IAG's strategy and management team and we do not intend to increase our percentage shareholding further unless there are material changes to the current situation," said Qatar Airways CEO Akbar Al Baker.

Non-EU shareholders of IAG are subject to a cap on ownership as EU airlines must be majority owned by EU shareholders. IAG is headquartered in London and registered in Madrid.

Last week IAG reported a 67 percent rise in 2016 first half (H1) profit of €554 million on revenue of €10.8 billion – a 4.1 percent increase over the same period last year. Net profit for the second quarter ending June 30 (Q2) was €396 million - an increase of 10.6 percent over the same period in 2015 - as cargo revenue fell 12 percent to €241 million.